Real estate is something that we often hear in most of the conversations about property, investment or even just with home that we live in. while, real estate is a term used to address a land and any permanent structures attached to it like buildings or houses. However, real estate is not a one-size-fits-all concept. This comes in different types and each one of the types have their different purposes and needs. With this blog, we are going to explore main categories of real estate and their key features etc.
1.Residential real estate
The first type of real estate investment properties is residential real estate which is the most popular type of property. In simple terms, it is homes where people usually live. However, these types of properties are designed for living purposes instead of business or industrial activities. Not only this, but this category breaks down into several subcategories:
- Single family homes : this type of property are standalone houses and designed for one family.
- Apartments: these are individual units within a larger building.
- Condominiums (Condos): these are somehow similar to apartments. These are individual units built in a larger complex but they are owned and not rented.
- Townhouses: the townhouses are multi-level homes. These homes typically shares walls with neighbouring units but they are actually separate entrances.
- Duplexes and triplexes: these are simple buildings that are divided into two or three separate units. These spaces are rented out to different tenants.
2.Commercial real estate
Commercial properties are the next type of real estate investment properties built to cater business purposes. these properties are built as offices, shops and restaurants etc. here are some of the examples:
Office buildings: these are simple offices ranging from small to large corporate towers.
Retail spaces: retail spaces examples are shopping malls, grocery stores and boutiques etc.
Hotels: these properties are designed for short-term stays.
Healthcare facilities: these are buildings such as clinics, hospitals and nursing homes as well.
3.Industrial real estate
The next type of property is industrial real estate. These properties are used for manufacturing, production and storage. However, these spaces plays key roles in supporting the supply chain of goods. Here are common types:
- Factories: these are spaces where goods are manufactured or assembled.
- Warehouses: these spaces are used for storage and distribution of products.
- Research and development spaces: these properties are generally used for innovation and product development.
- Logistics centers: these properties are designed to transport and supply chain management.
4.Land
Land is actually a blank slate in the world of real estate. It includes undeveloped properties and vacant land that are used for different purposes. this is further categorized into:
- Agricultural land: this is used for farming and livestock activities.
- Vacant land: unused plots that hold potential for development.
- Recreational land: these are areas such as forests, parks and hunting grounds as well.
5.Mixed use properties
The next type of real estate investment properties is mixed-use properties that combines elements such as residential, commercial and even industrial real estate. For instance, you can consider a building with apartments on the upper floors and retail shops on the ground floor. This is known as a mixed-use property.
Understanding Real Estate Types
There are several reasons why it is important to understand the types of real estate. It helps you to make informed decision as per your goal. However, each type of property has its own set of risks and rewards. Example- residential properties are considered as safer investment and commercial properties may offer higher returns.
Real estate is a diverse and dynamic field which covers different aspects of our lives. Such as the space where you live in, shops where you do groceries or the factory where your favorite gadgets are produced. Not only this, but each type of real estate have their own purposes. so the next time you are thinking about real estate remember there is more to it than just houses and apartments.
